O’keefe Stevens Advisory, an investment advisory firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. 2024 was an eventful year for the fund, and its largest position, Nvidia (NVDA), grew over 170% as business remained robust. The 2024 results were satisfactory, with Nvidia and Fannie Mae (FNMA & FNMAS) showing positive performance, while Warner Brothers Discovery (WBD), Graftech (EAF), and GreenFirst Forest Products (ICLTF) significantly underperformed. In addition, please check the top 5 holdings of the strategy to know its best pick in 2024.
In its fourth quarter 2024 investor letter, O’keefe Stevens Advisory emphasized stocks such as Beyond, Inc. (NYSE:BYON). Beyond, Inc. (NYSE:BYON) is an online retailer of furniture and home furnishings products. The one-month return Beyond, Inc. (NYSE:BYON) was 56.40%, and its shares lost 65.06% of their value over the last 52 weeks. On February 10, 2025, Beyond, Inc. (NYSE:BYON) stock closed at $8.68 per share, with a market capitalization of $397.699 million.
O’keefe Stevens Advisory stated the following regarding Beyond, Inc. (NYSE:BYON) in its Q4 2024 investor letter:
“Beyond, Inc. (NYSE:BYON) operates as an asset-light e-commerce company, owning and managing a portfolio of retail brands such as Overstock, Bed Bath & Beyond, Baby & Beyond, and Zulily. With a high EBITDA-to-free-cash-flow (FCF) conversion and low capital requirements, it is positioned to scale efficiently. Recent acquisitions, including Bed Bath & Beyond (2023) and Zulily (2024), have expanded their reach while revealing management missteps and growing pains related to brand integration and operational execution.
Thesis: 1. Leadership and Vision – Chairman Marcus Lemonis employs a hands-on, performance-driven leadership style. His compensation is equity-based, with options linked to significant stock price appreciation ($45, $50, and $60 strike prices). 2. Asset-Light Model – Beyond’s capital-light approach minimizes fixed costs and facilitates high FCF conversion, with incremental return on invested capital (ROIC) near 100%. This positions the business for profitable growth as revenue scales. 3. Valuation Opportunity – Beyond trades at distressed levels, with a market cap of $234m and a price-to-sales ratio significantly below peers. Analyst FY25 revenue estimates of $1.49B are overly pessimistic and extrapolate recent trends, which are likely to reverse. Market share gains and a stabilizing furniture market should drive revenue above estimates, bolstered by improving customer acquisition metrics and app usage trends. 4. Strategic Partnerships – A recent $25m investment in Kirkland’s offers multiple synergies…” (Click here to read the full text)
A mid-sized warehouse filled with furniture and home appliances.
Beyond, Inc. (NYSE:BYON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Beyond, Inc. (NYSE:BYON) at the end of the third quarter which was 19 in the previous quarter. While we acknowledge the potential of Beyond, Inc. (NYSE:BYON) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article we discussed Beyond, Inc. (NYSE:BYON) and shared the list of retail stocks that are skyrocketing so far in 2025. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.